College students more confident about their future than their university peers: RBC Poll

College students view post-secondary education as job training whereas university students see it as a stepping-stone

TORONTO, September 18, 2013 - While the majority of
post-secondary students see the value in their education,
more college students (92 per cent) say their education gives
them an advantage
and puts them on a level playing field in the job market compared
to their university peers (87 per cent). The 2013 RBC Student
Finances Poll also found that 81 per cent of university grads
see post-secondary education as a stepping-stone to higher
study, compared to 70 per cent of college students.

We know that the employment rate increases with education,
said Melissa Jarman, director, Student Banking, RBC. Understanding
that a certificate, diploma or degree makes you more than
45 per cent more likely to be employed shows that regardless
of the route you take, post-secondary education really is
one of the most important ways to secure your future.

While college students may be planning to get into the workforce
more quickly, university students can expect higher income
potential upon graduation. Statistics Canada notes that average
salary two years after graduation for university graduates
is $45,000 and $35,000 for college graduates.

However, higher earning potential comes with an associated
cost.
The RBC poll showed that university students expected the
total cost of education to be $40,500, more than 60 per cent
higher than college students ($25,100). According to the poll,
the percentage of university and college students who planned
to take on debt was roughly similar (67 per cent versus 63
per cent, respectively). University students planned to take
on approximately $10,000 more than their college-based peers
and planned to take almost an additional year to pay it off.

In Canada, we are fortunate to have a robust post-secondary
system that allows for choice, adds Jarman. While
there are significant financial considerations to be made,
the most important decision is to choose the career path that
is right for you, and then evaluate your options to fund that
choice.

Jarman offers the following tips to students who want to
ensure they are making the best financial investment in their
future:

Self examination: Before you even look at schools
or fees, start with self examination:

What are your interests and passions?

What are your strengths and abilities?

What jobs or careers interest you?

Labour market trends: Use research
from Statistics Canada or industry associations to better
understand where the opportunities are in the labour market
so that you have a better chance of finding a job when you
graduate. Evaluate the market size and the salary expectations,
location and mobility requirements for any field you are
considering.

Education options: Consider all your options, including
college, university and trade/vocational school. Be sure
to evaluate all aspects, including length of study, specific
learning outcomes, expected salary upon completion and future
growth and development.

Cost: Investigate the cost of your planned education
and begin to think about how you will pay for it. Be sure
to understand and evaluate all of the options available
to you, including RESPs, scholarships and bursaries, and
loans from the government as well as financial institutions.

About
RBC's financial planning advice, resources and interactive
tools
RBC's Advice
Centre offers advice and tools for students. Interactive
tools and calculators provide customized information covering
many facets of personal finance, including the Debt
Reduction Plan and the Debt
Consolidation Calculator. With the guidance of RBC advisors
who are available to chat live, Canadians have access to free,
no-obligation professional advice about RBC products and services
and personalized one-on-one service. Further information is
available at rbcadvicecentre.com.
In addition, RBC'smyFinanceTracker,
a comprehensive online financial management tool, offers all
personal RBC online banking clients the ability, at no cost,
to create a set budget and track their spending habits. As
well, RBC Virtual
Visa Debit enables clients to pay for online, over the
phone, or mail order purchases with funds directly from their
bank account.

About RBC Student Finances Poll 2013
The 2013 RBC Student Finances Poll was conducted by Ipsos
Reid through a national online survey of 1,107 post-secondary
students (as of September, 2013). Data was collected from
June 18 to July 2, 2013. The results are based on a sample
where quota sampling and weighting are employed to balance
demographics and ensure that the sample's composition reflects
that of the actual Canadian student population according to
Census data. Quota samples with weighting from the Ipsos online
panel provide results that are intended to approximate a probability
sample. An unweighted, probability sample of this size, with
100 per cent response rate, would have an estimated margin
of error of ±3 percentage points, 19 times out of 20.
All sample surveys and polls may be subject to other sources
of error, including, but not limited to, coverage error and
measurement error.